Allstream announces layoffs of 143 full-time positions

by Jeff Wiener on February 10, 2010

An internal Allstream announcement issued this morning announces lay-offs of 143 full-time positions. The internal announcement, written by Pierre Blouin, CEO of Allstream, is as follows:

Today we have to announce that we are proceeding with a reduction of 143 full-time permanent positions in Allstream and in corporate groups that support Allstream.

We came to this difficult decision following our fourth quarter 2009 results that showed a continued decline in our national business. While there are signs of stabilization, we must continue to further reduce our operating costs through various measures including position reductions.

Our goal is to build a solid and winning business for the future and we must make these difficult choices to improve our performance while we prepare to expand our national network footprint and to launch our Allstream wireless business in 2010.

Of the 143 identified positions, 74 are bargaining unit positions and the process outlined in their Collective Agreements to achieve the reductions will be followed. These reductions come at a difficult time as we have just entered the conciliation stage of the bargaining process with the CAW.

The majority of employees impacted by this initiative will be notified by their leader by the end of this week. Unfortunately, as of today, 19 employees from various groups in Allstream and in corporate groups that support Allstream have already left the company as part of this reorganization.

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